Smartphones constituted 43 per cent of the total Indian handset shipments in 2016, , says ASSOCHAM-KPMG study

According to an ASSOCHAM-KPMG joint study, smartphones constituted 43 per cent of the total handset shipments in India during 2016. Meanwhile, the Indian handset market recorded an increase in revenue from Rs 1.11 trillion in 2015 to Rs 1.35 trillion in 2016.

Further, the industry recorded 85 per cent growth in manufacturing from Rs 540 billion in 2015-16 to to Rs 900 billion in 2016-17.The study also pointed out that the industry is of the view that the government may increase the Merchandise Exports from India Scheme (MEIS) incentive and introduce new incentives such as freight equalisation subsidy. Further, the government may increase duty draw back to 3 per cent to attract more players in the market and to encourage the existing players. Currently, handset manufacturers have only 2 per cent export incentive under the MEIS introduced in the Foreign Trade Policy 2015-20.

Meanwhile, the Fast Track Task Force (FTTF), which was set up in 2014 by the Ministry of Electronics and Information Technology (MeitY) is aiming to increase the number of handsets manufactured in India to 500 million and handset exports to 120 million by 2020.